Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-09-01

It's organization President of the Central Pacific
Railroad Company. one OF the companies which
| received aid in bonds from the Government,
| and on the 10th of August, whilst he was under
| examination respecting the aflairs of that COM
| paHy, a number of vouchers purpotins to rep
4 resent the expenditure OF moneys belonging TO
| it were produced and verified. These vouchers,
\ as stated by the Commissioners, represented the
aggregate sum of SIS, rs 6S, which had been
| expended by Mr.. Stanford between November
8. 1870, and December q, 1880. and by him
| charged TO the company, and by the company
| subsequently reimbursed to him. The persons
to whom the moneys were paid and the objects
| to which they had been applied do not appear
upon the face of the vouchers, except that the
objects are stated 10 have been for General Ex-
pense Account" or for Legal Services" and
except also. that in few instances the initials
of the persons to whom the money is purported
| to have been paid or given.
One of the vouchers t256s10 represented the
| expenditure of Si7l, Isl 50. 1t reads as follows
C. p. K. r. Co 10 Leland Stanford, DR..
To cash paid on account of general
expenses to December 81. 1s75....... 1857 1855 81
| To cash paid on account of general
| expenses to December 81, lS7S.-..,. 344l6 Sc
sl71,7s IS
This was Endorsed, N addition to its number
amount and statement of its general character
| as follows:
Allowed Feb :, 1876, by Board of Directors
Folio 153.
81 certify that the within account. amounting
| 70 el7l.7Sl 50, is correct. LELAND rrANFoRD"
When under examination Mr.. Stanford was
| asked to explain in detail the character of the
expenditure covered by this voucher, he replied
that he HAD no recollection of It's contents, but
presumed it ives made up of many items. He
| then proceeded to explain at great length the
manner in which he did business for the com
pany in negotiating loans and mourning ex-
penditures, which was briefly this: The loans
| were generally negotiated in San Francisco, and
the payment of expenses incurred by him was
frequently made there. though for many years
the Office of the company was at Sacramento
| His payments were usually in checks drawn in
his own name. The check-books, with loose
memoranda kept by him, were har ded, from
| time to time, to some one connected with the
| Office, by whom q general voucher was made up
| embracing the several expenditures incurred.
and the voucher was then presented by the wit
| ness to the Directors of the company and BY
them approved. The witness kept no accounts
OF his several expenditures, except loose memo
| randa and his cheok-books, from which the
] vouchers were made up: and he supposed the
| voucher In question WAS thus made up He could
not, at this date. state the items which made up
| the several accounts-but ne had no doubt that
he explained the matter to the company when
| the voucher was Presented. To the question
| What explanation did you give the COM
| pany the witness answered as follows
| wen, as do not remember the items of it.
cannot remember, OF course. what explanation
| l may have given 70 the company. l don't
| think went into details of these things to the
| company further than to say found it neces-
sary to expend for the general interest of the
| company so much and do not think that they
| ever questioned me particularly as to the wis
I dom OF the expenditure"
The Commission then asked the witness this
| question " Was any part of the Sl7l 600 THE
sum named in this bill that l have handed 10
| you aud that you havel paid for the purpose OF
| influencing legislaiion?'
| The counsel present acting for the railroad
| company OBJECTED TO the question, for the rea-
| son that the witness had said that he did not
| remember what constituted the items compos-
| ing the voucher, and said that upon that point
| (of influencing legislation any question the
| commission had asked. or might be disposed 10
ask, the witness would be advised not to an
| sWer, upon the ground that the company is will
| ing TO account TO the Government for its propor-
! ton OF any voucher that is produced, or of any
| entry upon the books of the company tn at is I'M
| explained, and therefore it will not make any
olherence what is done with the money
! whether twas thrown into the sea or wasted in
any manner or form. The Chairman of the
commission repeated the question in modified
lorn us follows Was any part of the sum
| named in the v ucher submitted to YOU paid 10
any agent or individual for the purpose OF Infiu-
! encing legislation 2"
20 this the witness answered as follows: al
totd you l did not know anything about this
| but then / shall act upon the advice of nv
| counsel don't suppose it can make any pos
siole ulherence as long as we can account for
| the money. If the Government is NOT satisfied
with the vouchers which we present. whether
| the money was expended, or wasted or any
| thing of the kind, it can make no possible diff
ference: because il 1t went into the sea-if had
| used this money Improperly or thrown it away,
might be accountable to the stockholders for
| my trust, but the Government cannot have any
more than the money, and the company is will
Ing 10 account Tor that if you are not satisfied
| with the action"
| The witness therefore under advice of coun-
sci declined to give any further answer.
The Chairman also asked this question care
| you able to state to the Commission that any of
the money was paid for Legitimate or corrupt
purposes-that is, to corrupt the Legislature of
ine state OF CaiIiornla, or any other State Legis
! lature, or the Congress of the United States ?''
and TO which the witness answered as follows :
| - have told you what know that do not
remember about that account, but l can say
| this, that never corrupted q member of the
| Legislature in my life. and do not know that
! any OF my agents ever did. So far as Congress
Is concerned, saw Statement. that the Board
| OF Directors allowed my account for expendi-
lures made in Washington or in various places
do not know that ever had any occasion to
pay out any money at Washington except for
| my own private expenses"
The witness, upon further examination les
| tilted that his check books in which he drew his
| checks for the expenditures were DESTROYED ;
| that it had always been his habit about once a
| year to have Clean up" and when he wanted
| TO go away he would overhaul his papers and
| what he did not want he would destroy that
| he had been to Europe three times within the
| last few years, and each time he had cleaned
| up leaving only such papers as in case ne
might not return, he was willing that other peo-
| pie might see
that he could not state the items of the voucher
and had no recollection of any OF them he was
! repeatedly asked substantially the same ques-
ton, as though by its repetition different an
! swer might be obtained The answer was, how
| ever. substantially the same in every instance
| Other vouchers of a similar kind presented by
the witness to the company were produced and
verified, and with respect to them the witness
| said as follows: 4" suggest to the Commission
that there is not in all that class of bills to-day
/ a single item which positively remember 1
| could not tell the amount nor when those bills
were credited, excepting l went to the books
! l cannot tell of single item that went to make
| up the amounts. Let my answer as TO this and
to the other (the frst) vouchers of that class be
/ the same as have made TO the other voucher ;
and will take that position generally"
| Yet the Commissioners felt it their duty TO ask
specifically as to each voucher substantially the
same questions. At which some feeling appears
| to have been excited, as the following passage
| from the examination upon one of the vouchers
! discloses:
chairman of the Commission-Was any part
of the sum expended through any agent or in
diFidual for the purpose of influencing legisla-
| ton?
"Answer-Not TO my knowledge. 1 have
| told you already. I do not know the object OF
| your examining me in this way l have told
| you that do not know anything about it, and
| have told you that, think. three or four
times
"The Chairman-I want You to distinctly un-
derstand that am going TO ask you Us to each
of these vouchers, and will put it on the
| record.
THE Witness-And 1 want you to distinctly
understand that shall exercise my discretion
| about 1t.
1.-THE Chsrman-That is your right, and it is
my right and duty, sworn to to ask you
1.-THE Witness-lt is your right and duty to be
a gentleman in asking questions
The Chsirman-Weil. if have not been 1
| will apologize.
The witnees-Well, think you have occa-
| sion TO apologize for asking such questions as
| that over and over again.
"The Chairman-I will repeat my question
and you can decline just as you have done.
am going through all these vouchers Just in this
way so that there viii be no mistake in the flu
| ture."
/ The Commissioners now ask in their petition
that the witness be summoned to show cause
why he should not be required to answer the In
| terrogatories whether any part of the sums
| named in the several vouchers was paid for the
purpose Of influencing legislation, which he ha.
declined to do except in the manner stated.
subsequently interrug atories were PROFOUND
ed 70 Mr.. Stanford inquiriDg whether any Dor
! ton of the moneys covered by the several
| vouchers produced following the first one was
paid to certain parties, who were named, for the